Managing Digital Business Infrastructure

Creating a Company website and the management issues that are involved in every stage

Nowadays business are growing more with the help of online websites. Every business has its own websites where people can visit and explore a lot of products by sitting at home. Building an ecommerce website is beneficial for those businesses which came new in the market. For a start-up business creating an ecommerce website helps a lot in order to expand the business firm small to big industries. For setting up an ecommerce website the first step is to use a strategy planning. Making a proper strategy is very important because when thing are planned beforehand then it becomes easier for future. The second step is to select domain for setting up the ecommerce website. Selecting or setting up a personal domain is helpful as it makes the business looks like a brand and through domain the people will be able to recognize the business brand very quickly. In the personal domain the registered email id is also given so that the customers can reach or can contact easily.

Once the two steps are followed the third step is to select prices of the products and setting up a payment method. Payment methods can be either debit or credit card or it can also be net banking. After the ecommerce website is made the marketing the products becomes an essential part. Marketing helps in growing of the business (Govindaraj, 2018). The last but not the least is keeping and analysing the activities of the websites where the business can take feedbacks of the customer and check everyday activities and can keep updating.

Merits and Demerits of locating a company’s digital business services inside another company with comparing the outsourcing to a cloud provider

1. Merits of Outsourcing- One of the advantage of outsourcing are when the task is outsources to the vendors then there are people who are expert in managing the problem. Sometimes the vendors with the help of some technical tools make the things much better than the outsourcing company can do. When the outsourcing is in the process by some vendors then the company gets a lot of time for improving their business core. By this time the company understand its problems and future circumstances and learns to control and to solve them when it will face a crucial challenge. Another advantage of outsourcing is that it reduces the cost which the company invest for the recruitment and the operational matters. Saving money helps the company to increase the company’s fund which can be used once they face any major crisis.
2. Demerits of Outsourcing- Like the merits of outsourcing there are also some demerits of outsourcing. The main important risk of outsourcing is that confidential data of the company might get exposed to the third party (Hasan, 2018). Once if the confidential data is exposed then the third party can be a great reason for the company’s downfall. Another demerit is that outsourcing is no doubt budget saving but sometimes there are hidden budget if the company is outsourcing with the international countries. So for the hidden costs the company sometimes can face financial problem which can lead to a major loss for the company. So outsourcing has both the merits and demerits.

Failure of Boo.com and discussing the new business model of Booho.com

The Boo.com was a very short time internet company that started in the year 1998 in England. The company in a very short period of time failed to meet the expectations. The main catastrophe or the main reason of the failure of the company is that within a short time the company invested a lot of money. The company did not meet the expectations and failed at last. There are also some other reason like there was too much lack in communication with the other departments who were in rapid growth at that time. The management system was also not so strong; no strategic plan was made before investment. The company invested almost 125 million Euros within short period of time which caused the downfall of the company. Many staffs were recruited in the company but there was no proper direction for them to work in their respected position. The company also recruited too much man power and couldn’t afford the cost of maintaining those employees which is also another great loss of the company.

Boohoo.com uses a business model which helps the company to hold a good market position in the company. The company uses the help of social media as then main part of marketing. The company knows that for marketing they need to take the help of social media which will help the company to reach more people (Walsh, Schaarschmidtand Ivens, 2017). The boohoo.com also has an Instagram account which has almost 6 million followers and they also has Twitter account which has more than 1 million followers.

Table 1: Six factors Model of Boohoo.com

(Source self generated)

Identification of the six factors and existing business that learns from business approaches of the digital organisation

By using the six factors model that is mentioned in the above any existing business can learn about the strategy of digital organization. For any business it is important to make a strategic plan so that by following a proper strategy a company can deal with the future circumstances. As one of the prominent magazine company named “The McKinsey Quarterly” learned lessons from the e marketing failures (Zhao, Chen and Shi, 2019). For success strategy needs to be planned in such a way where it can cover some important thing like Budget, maintaining profile, proper execution of every plan its concept and its innovation which are already mentioned in the above.

Reference

Govindaraj, M., 2018.Method for creating cache to e-commerce application in mobile device. U.S. Patent Application 15/370,039.

Hasan, J., 2018. Designing and Developing E-Commerce Website with Magento.

Walsh, G., Schaarschmidt, M. and Ivens, S., 2017. Effects of customer-based corporate reputation on perceived risk and relational outcomes: empirical evidence from gender moderation in fashion retailing. Journal of Product & Brand Management.

Zhao, Y., Chen, L. and Shi, J., 2019, December.Six-Factor Model Influencing the New Professional Farmers’ Willingness to Sustainable Production.In 2019 International Conference on Economic Management and Cultural Industry (ICEMCI 2019) (pp. 559-562).Atlantis Press.